Which of the following is NOT a step in the approach to segmenting product markets?
A. Name the possible product markets.
B. List the potential customer needs.
C. Estimate the size of the product market segments.
D. Form a heterogeneous market.
E. All of the above are steps in the process.
Answer: (D) Forming heterogeneous markets is the opposite of what one wants to do in the development of product-market segments. The marketer, or product manager, should be looking for homogeneous market segments. (A) is incorrect. The marketer should strive to find a name for the possible segments. (B) is also incorrect because the marketer should list the potential customer needs (as well as wants) for each of the segments. (C) is incorrect because the marketer needs to know the approximate size of the market in order to assure profitability. Since (D) is a correct choice, (E) is incorrect.